1 project management presentation 2008 project management introduction michel tollenaere (inpg)...

1Project Management Presentation 2008

Project ManagementIntroduction

Michel Tollenaere (INPG)http://www.g-scop.fr/~tollenam/best

AgendaAgenda Definitions

Project scope management Time, quality, cost

Human resources management Information management

Risk management Project Management Institute


Definitions

A project is a temporary endeavour undertaken to create a unique product or service.

It is • performed by people

• constrained by limited resources• planned, executed and controlled


Examples

• developing a new product or service • effecting change in a structure, staffing or style of an organisation• designing a new transportation vehicle• developing or acquiring a new or modified information system• constructing a building or facility • building a water system for a community in a developing country• running at campaign for political office• implementing a new business procedure or process• budget from 10k€ to many M€

• METEOR an automatic underground railway in Paris

• implementing SAP in multi-sites company

• the football world cup in Paris in 98

• from 8 to 10 digits numbering in a phone system

• implementing A380 in a company ..\..\


Project features (1)

• A project has a definite beginning and definite end

• The duration of a project is finite

• The opportunity or market window is usually temporary, most projects have a limited time frame in which to produce the product or service

• The project team - as a team - seldom outlives the project. Most projects are performed by a team created for the sole purpose of performing the project

Temporary

• Projects involve doing something that has not been done before in the same environment

• The project may require some innovation to be completed

Unique result



Progressive elaboration

• A project occurs step by step to define the product or service, in a so called “progressive elaboration” process.

• for instance, the development of a chemical processing plant begins with the process engineering to define the characteristics of the process, and ends with the final assembly.

Development of a chemical processing plantDefine the chemical

characteristics of the process

General plant layout

Mechanical characteristics of the

process units (pumps..etc)

Detailed drawings

Manufacturing of the parts

Final Assembly



Progressive elaboration• In aerospace industry, projects are divided in milestones (M1, M3, M5, M7, M9, M11) corresponding to a “state” of the aircraft.


Project Lifecycle

TimeStart Finish

Cost and Staffing

levelInitial Phase

Intermediate Phases (one

or more) Final Phase

Milestones : • defined state of the project • decision point


Project Lifecycle : example US - DOD 5000.2


Construction Project Lifecycle


Pharmaceuticals Project Lifecycle


Project scope management (PMI chap 5)




Risk management



• Product Scope : the features and functions that characterise a product or service

• Project Scope : the work that must be done to deliver a product with the specified features and functions

Both scopes are described and detailed with specific tools.

Project scope management consists to ensure that the project includes all the work required, and only the work required, to complete the product successfully.


Product scope management

PROGRAMME

SERIES /DERIVES

COMPOSANTS PRINCIPAUX

ASSEMBLAGES

SOUS-ASSEMBLAGES

COMPOSANTS ELEMENTAIRES

A380

A380 800F A380 800 A380 700 ...

FUSELAGE AILE EMPENNAGE ...

CAISSON DE VOILURE LEADING EDGE BORD D’ATTAQUE ...

STRUCTURE SYSTEME ...

Part 10005

Part 10009

Part 10002

ATTACHE TRINGLERIE

MECANIQUE

STRUCTURE

PROGRAM

SERIES OF AIRPLANE

MAJOR COMPONENTS

ASSEMBLIES

SUB -ASSEMBLIES

COMPONENTS ELEMENTARY

A380

A380 800F A380 800 A380 700 ...

FUSELAGE WING TAILPLANE ...

CAISSON DE VOILURE LEADING EDGE BORD D’ATTAQUE ...

STRUCTURE SYSTEME ...

Part 10005

Part 10009

Part 10002

ATTACHE TRINGLERIE

PRODUCT STRUCTURE LEVELS EXAMPLE OF STRUCTURE

MECANIQUE SYSTEMHYDRAULIC

STRUCTURE

• Bill of Materials• FAST Diagram• Structured tool that describes the product


Project scope management : WBS Work Breakdown Structure


Project scope management : WBS of a software release


Project scope definition : from BOM to WBS

• Defining the right activities is essential for « project scope definition »

• a WBS from a previous project is often used as a template for a new project.• any component in a BOM must be purchased or manufactured.• in all cases (purchasing or manufacturing), it must be tested.• any assembly should be assembled and tested (especially in software engineering)• documentation activity is essential for robust project

Activity. An element of work performed during the course of a project. An activity normally has an expected duration, an expected cost, and expected resource requirements. Activities can be subdivided into tasks.

Activity Definition. Identifying the specific activities that must be performed to produce the various project deliverables.


Project scope Change Management

• Any change to product and/or project scope must follow a formal process

• This process must finish with the formal acceptance of the change by the different stakeholders.

A change request may be the result of :

• An external event (eg. Change in a government regulation)• an error or omission in defining the scope of the product (adding a failure system regulation).• an error in defining the scope of the project (a missing inspection)• a value adding change (positive opportunity)• a response to an identified risk (see section about risk management)


Customer needs :Customer needs

description :

simple, red, robust, with wheels

What is finally developedWhat is the

manufacturer expected to do

What the architect finally described

What the architect understands

Possible evolutions in Product scope


Customer’s Needs

Specifications What has been realised

Errors in specifications

Waste

Unsatisfaction

AdequateQuality

Happy hazard

Overquality

Court circuit

Monitoring Project scope during the project


Monitoring Project scope during the project

A universal tool ……

might be so heavy and expensive

??

??



Project Scope Management. A subset of project management that includes the processes required to ensure that the project includes all of the work required, and only the work required, to complete the project successfully. It consists of initiation, scope planning, scope definition, scope verification, and scope change control.

Scope Definition. Subdividing the major deliverables into smaller, more manageable components to provide better control.Scope Planning. The process of progressively elaborating the work of the project, which includes developing a written scope statement that includes the project justification, the major deliverables, and the project objectives.Scope Statement. The scope statement provides a documented basis for making future project decisions and for confirming or developing common understanding of project scope among the stakeholders. As the project progresses, the scope statement may need to be revised or refined to reflect approved changes to the scope of the project.Scope Verification. Formalizing acceptance of the project scope.


Project triangle Time, Cost, Quality


Project scope management

Time, quality, cost Human resources management

Information management Risk management


Project time management

• requires activity definition• includes activity sequencing• estimates activity duration• elaborates schedule of activities

Activity duration model



• estimates activity duration

Resource requirements : which resources are required for such activity ?Activity duration # activity work effortSome activities (eg. getting authorisation, transportation time) can require a long time without any work-effort.

• elaborates schedule of activities

Many software tools (MSProject) do the job quite well (in a deterministic manner)They offer many outputs (GANTT Chart, PERT … etc)



• relationships between activities : Logical Relationship

• Finish-to-start-the initiation of work of the successor depends upon the completion of work of the predecessor.

• Finish-to-finish-the completion of the work of the successor cannot finish until the completion of work of the predecessor.

• Start-to-start-the initiation of work of the successor depends upon the initiation of the work of the predecessor.

• Start-to-finish-the completion of the successor is dependent upon the initiation of the predecessor.

Activity A Activity B



• Network Logic Diagram

Precedence diagram method ; A, B, C, D, E, F are activities

A B

CD

E

FinishF

Start

Arrow diagramming method ; activities are shown as arrows

AB

CD

E

FinishF

Start



• Provides start and finish dates for all activities

A B

CD

E

FinishF

Start

AB

CD

E

FinishF

Start

Float. The amount of time that an activity may be delayed from its early start without delaying the project finish date. Float is a mathematical calculation, and can change as the project progresses and changes are made to the project plan. Also called slack, total float, and path float.

Free Float (FF). The amount of time that an activity can be delayed without delaying the early start of any immediately following activities. See also float.

Critical Path. The series of activities that determines the duration of the project. In a deterministic model, the critical path is usually defined as those activities with float less than or equal to a specified value, often zero. It is the longest path through the project. See critical path method.


Project Cost management

• cost management includes the following processes

Resource planning - Cost estimating - Cost budgeting - Cost control

TimeStart Finish

Cumulative values

Initial Phase

Intermediate Phases (one or more)

Final Phase

Total budget of the project

The S – Curve of cost baseline

M€


Project Cost management

• different cost for an activity

Planned Value (PV). The physical work scheduled, plus the authorized budget to accomplish the scheduled work. Previously, this was called the budgeted costs for work scheduled (BCWS).

Earned Value (EV). The physical work accomplished plus the authorized budget for this work. The sum of the approved cost estimates (may include overhead allocation) for activities (or portions of activities) completed during a given period (usually project-to-date). Previously called the budgeted cost of work performed (BCWP) for an activity or group of activities.

Actual Cost (AC). Total costs incurred that must relate to whatever cost was budgeted within the planned value and earned value (which can sometimes be direct labor hours alone, direct costs alone, or all costs including indirect costs) in accomplishing work during a given time period.


Project Cost Management

• different contractsA contract is a mutually binding agreement that obligates the seller to provide the specified product and obligates the buyer to pay for it. Contracts generally fall into one of three broad categories:Fixed-price or lump-sum contracts - this category of contract involves a fixed total price for a well-defined product. Fixed-price contracts may also include incentives for meeting or exceeding selected project objectives, such as schedule targets.Cost-reimbursable contracts - this category of contract involves payment (reimbursement) to the contractor for its actual costs. Costs are usually classified as direct costs (costs incurred directly by the project, such as wages for members of the project team) and indirect costs (costs allocated to the project by the performing organization as a cost of doing business, such as salaries for corporate executives). Indirect costs are usually calculated as a percentage of direct costs. Cost-reimbursable contracts often include incentives for meeting or exceeding selected project objectives, such as schedule targets or total cost.Time and material contracts-time and material contracts are a hybrid type of contractual arrangement that contain aspects of both cost-reimbursable and fixed- price-type arrangements. Time and material contracts resemble cost-type arrangements in that they are open ended, because the full value of the arrangement is not defined at the time of the award. Thus, time and material contracts can grow in contract value as if they were cost-reimbursable-type arrangements. Conversely, time and material arrangements can also resemble fixed-unit arrangements when, for example, the unit rates are preset by the buyer and seller, as when both parties agree on the rates for the category of "senior engineers."


Project quality management

Let’s start with a story :

La Route du Rhum 2002

Only 3 sailers (upon 15) arriving at Pointe-à-Pitre !!!



Quality management applies to :- project activities- and project results (deliverables, components)to fulfil quality objectives.

PLAN: Design or revise business process components to improve results DO: Implement the plan and measure its performance CHECK: Assess the measurements and report the results to decision makers ACT: Decide on changes needed to improve the process

The Deming Cycle



Quality Planning. Identifying which quality standards are relevant to the project, and determining how to satisfy them.

Quality Assurance (QA). 1) The process of evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. 2) The organizational unit that is assigned responsibility for quality assurance.

Quality Control (QC). 1) The process of monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. 2) The organizational unit that is assigned responsibility for quality control.


Human resources management




Risk management



As project is performed by humans, Project management is human and organisation management.

• who decides ?• who is responsible on ?• who controls ?• who takes benefits of ?

Complex projects are based on complex organisations

Best skills for all complex tasks worldwide



Airbus Company has been created to provide airplanesIt has been created from Aerospatiale, British Aerospace, CASA, DASA



Is formalised in a Organisation Breakdown Structure (OBS)

A depiction of the project organization arranged so as to relate work packages to organizational unitsIt shows which work components have been assigned to which organizational units or persons.

Phase / Person A B C D E F …Requirements S R A P PFunctional S A P PDesign S R A I PDevelopment R S A P PTest S P I A P

Responsibility assignment matrix P = ParticipantA = AccountableR = Review requiredI = Input requiredS = Sign-off Required


Sub-contracting requires internal resources for negociation and control.

Do not confuse : a subcontractor is not a partner

Subcontracting management


Information management


Some tools (1)

Ensure message storage ?Managing group lists ?Impossible to share large files


Some tools (2)

annotation and correction of documents


Some tools (3)

Powerpoint diapo conférence

Chats

Microsoft Netmeeting

Yahoo groups

Windows sharing, shared blackboard


Extended entreprising information system


ENTREPRISES INFORMATION SYSTEMS

Maintenance

Marketing Design Industrialisation Quality assurance

Commercial ProductionLogistics Quality

E.R.P.

P.D.M./P.L.M.

K.B.E. K. M.

C.R.M. S.R.M. A.P.S.M.E.S.


Supplier

Orderer Sub-contractor B

Partner

Sub-contractor A

• deiversified technical products• multi-sites, multi organisation development and production• development under time constraints

• physical flows• information flows• financial flows• decision systems


Space

TimeAsynchronousSynchronous

Sam

e lo

cati

onD

ista

nt

Internet, Intranet, PDM, PLM

Engineering et communication situations

Project location

Slides-conferenceVisioconference


Organisations

Task 1

Task 2Task 3

Tasks, processus

Files and Documents

Systems ?

Information System


Réseau de Paramètres

1

24

5

10

1214

15

Organisations

Task 1

Task 2Task 3

Tâches, processus

Files and Documents

Quels systèmes ?

Who is responsible on what?Configuration managezment

Link between parameters, functions,

items

Links between documents and assemblies and systems

Who do what ?Who has done what ?

Parameter :Physical valueUnitversiontolerance and gap….

Donneur d ’ordres

Partenaire rang 1

Equipementier

Sous traitant

Partenaire rang 1

Organisations, rôles au sein des projetsValue evolution

Value Evolution

Liens explicites entre paramètres, et objets

documentaires

ActionExécutionDécisionNotification


Engineering change management

– Engineering Change management • Automatisation du traitement des "Change Process"

• S'assurer que toutes les étapes approbation/qualité ont été réalisées

– Document Review• Router automatiquement vers les "reviewers" (requis

ou optionnels)

• Gérer les approbations ou re-router pour révision

EC initialisation

EC Pre-feasibility studies

EC Impactsand feasibility

studies

Selection & Solution Definition

Associateddocumentation

up-date

New solutionnotification

New solutionembodiment

EngineeringChange Request(ECR)

Engineering ChangeProposal (ECP)

Solution to be implemented &Potential impacts assessedECO released

Solutionimplemented &notifiedDocumentationup-dated

ECR initialised

Potentialsolutionsdefined

Documentation up-dated

New solutionnotified

Stage 1: EC Proposal

Stage 2 : EC Investigation

Stage 3 : EC Embodiment

Notification

Files and Documents

Approva

l

Status evolution

Push of documents

Efficiency et Traçing


Risk Management


Project risk is an uncertain event or condition, that, if it occurs, has a positive or a negative effect on a project objective (cost, time, quality).

A risk has a cause and, if it occurs, a consequence.

In risk management, probability and impact (severity) of the risks are considered.

What is risk ?


References

• Project Management Institute http://www.pmi.org/

• An example of students project http://192.168.41.10/~tollenaere/e-commerce/

• 2PLM lettre bimensuelle http://www.johnstark.com/xzxzx.html dernière édition sur http://www.johnstark.com/xzxzx.html

• PDM Information Center, http://www.pdmic.com/

• CIMdata, http://www.cimdata.com/

• PDM enablers de l’OMG http://www.omg.org/techprocess/meetings/schedule/PDM_RTF_1.5.html

1 project management presentation 2008 project management introduction michel tollenaere (inpg)...

Documents

controlled slide

limited resources

temporary endeavour

unique product